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What is marginal cost?
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Answered by: T.Prasad
- Aug 10th, 2006
Marginal Cost is the cost with is incurred to produce one more extra unit.
Example to produce 100 units cost is Rs. 500/-
to produce the 101th unit the cost became Rs. 520/- (The cost to produce one more unit i.e, unit is Rs. 20/-) The Rs. 20/- is called Marginal Cost.
ngodza22
- Jun 29th, 2008
It is a costing rule technique that excludes fixed cost from influencing decisions because they are said to be irrelevent cost.... simply because they are bound to be incurred even if a firm produce or doesn't produce eg rent,
andy
- Dec 26th, 2006
Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it, your marginal cost can be way out of line with your average variable cost.
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Definitions, Explanations, How the calculations are done and possibly worked examples.
amitchandpatra
- Aug 15th, 2008
Just-in-Time (JIT) manufacturing involves purchasing the raw materials and going ahead with the production process as and when the demand arises. JIT is an approach towards minimizing waste and maximi...
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Explain Contribution Margin ?
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vasudeo007
- Aug 18th, 2008
In cost accounting the concept of Contribution exist. Costs are bifurcated into Fixed and Variable. Equation is simple: fixed cost + variable cost + profit = sale pricein short sale price - variable c...
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vasudeo007
- Aug 18th, 2008
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What is margin of safety (MOS)?
Praseedha.vs
- Nov 13th, 2008
Margin of Safety refers the excess of actual sales over the Break even sales. This is usually indicated in percentage. Formula for MOS is (Actal Sales-Break even sales)*100/Break even sales
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Cost Accounting
Illustrate the role of cost accounting in a company
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I transfer 20 Kg of Raw Material to WIP, but there will be weight loss incurred during the production periods.Is this double entry correct?Dr : WIP (18 Kg)--------------------S$20Cr : Raw Material (20Kg)-----------S$20If yes what will the double entry to capture the 2Kg weight loss?Thanks,Denny
carajeshsingh
- Jun 13th, 2008
no.journal entry shall be passed to capture 2 k.g. weigt loss. finished product shaal automatically cover cost of 2 k.g. loss of material is normal wastage.
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- Mar 2nd, 2009
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- Mar 2nd, 2009
Funds flow statement includes the transactions which are made on credit basis whereas Cash flow statement includes transactions recorded on current date basis.
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What are the freight charges ?
c7831887
- May 21st, 2009
There are two types of freight charges one is Inward and the other one is Outward.Inward is grouped under Direct expenses and it may be taken into landed cost.? Outward is grouped under Indirect expense and it will be?incurred after production.
jajpur78
- Sep 2nd, 2008
Its a direct expense and it is basically the expenditure that is spent in production for transportation.
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c7831887
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How to calculate Break Even Analysis (BEP)?
bibhutigiri
- Jul 3rd, 2009
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What is the purpose of chargeback?
krishnahr13
- Jun 21st, 2010
Purpose of charging back is to assertain the accoutal cost / profit of the perticular unit (when one internal business unit is serving to other BUs like IS service or Consulting service etc.,) expenses incurred on shared basis to be charges back to other BUs..
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What is meant by ERS. Explain in detail about ERS.
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What is the meaning of project costing? What are the elements of a standard project cost sheet.
kl_krupa
- Oct 3rd, 2010
Project costing is the identification and reporting of all costs generated by a single project. Elements of a standard project cost sheet would include all production orders, purchase orders and inventoried items are separated and pegged to the project in order to provide a total project cost
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EOQ
What is meant by EOQ?
Lakshmikanth Dandu
- Jan 27th, 2011
Economic order quantity refers to the quantity to purchased every time so as to minimize total of two types of costs associated with purchase. The size of the order for which the total of ordering costs per annum and carrying cost per annum are minimum is know as the eoq.
kl_krupa
- Oct 3rd, 2010
Economic order quantity is the level of inventory that optimises the total inventory holding costs and ordering costs.
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Explain about variable cost along with few situations where you would use variable cost .
vasudeo007
- Aug 18th, 2008
Costs are bifurcated into 2, Fixed cost and variable cost. In fact the third category also exist which is Semi variable cost.Fixed costs are those costs which do not vary with the production level. Li...
ramm.30
- Jun 12th, 2008
Variable cost varies with level of out put but the per unit cost of variable items is fixed.eg: production of "x" no. of units where the cost varies with no. of units produced.
Cost Accounting Interview Questions
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